This project is based on an indicated mineral resource of 52,3-million tons at an average grade of 6,7 g/t, containing 11,3-million ounces of gold. This resource is present in the Beatrix, Kalkoenkrans and Leader reefs.

Wits Gold chose Bloemhoek as its flagship project because it is one of its shallower opera-tions, reaching depths of 1 300 m to 2 300 m.

Wits Gold geologist and investor relations manager Hethen Hira says that the pro-ject is “very similar” to Gold Fields’ Beatrix operation, which “represents 20 years of mining and pushes out 500 000 oz a year”.

“This area was prospected by many people before we came along, and they delineated eight different reefs. “The conception was that the Beatrix reefs did not go further north than the Beatrix mine, but our geological models have proved these theories wrong, and we have a serious reef package underlying the Bloemhoek project,” he adds.

The mine has 11,3-million ounces indicated between 1 300 m and 2 400 m, with an estimated annual production close to 400 000 oz. Hira notes that the company would need a $1-billion (R8 094-million) capex through-out the 32-year life of the project, with gold production expected to start in year nine.

“It will be a long lead time to get operational following the bankable feasibility, but it is a long-term investment in gold for the company,” he says.

Apart from the five-year ramp-up, there will be 23 additional years of production with an annual production of 380 000 oz of gold. Total gold production is estimated to be 9,6-million ounces. The estimated life-of-mine average operating costs will be R515/t ($64/t) and average cash costs will be $438/oz.

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